• XRP has been in a bearish trend since failing to breach the $0.82 resistance on its second try on 19 July.
• The market structure and momentum of XRP favoured the bears, yet there is a significant demand zone below $0.6 which could potentially lead to a reversal.
• Open Interest showed that bears had the upper hand, however bulls can wait for signs of a shift before bidding on the asset if it retests the $0.566-level.
XRP Facing Bearish Outlook
XRP has been in a bearish trend since failing to breach the $0.82 resistance on its second try on 19 July; with market structure and momentum of XRP favouring the bears, further losses were expected. Open Interest showed that bears have had an upper hand over bulls so far.
Significant Demand Zone Below $0.6
Yet, there is still hope for buyers as there is a significant demand zone below $0.6 which could potentially lead to a reversal coming into play should XRP reach it – this could be seen after a retest of the $0.566-level if signs of change occur in terms of momentum or structure beforehand.
Bulls Can Wait for Signs of Change
Bulls can wait for signs of change before bidding on the asset should it retest the mentioned level – however, this idea would be invalidated should XRP drop below the breaker block at any point; therefore, traders are advised to set up stop-losses at around $0.513 just in case this occurs..
Potential Targets For Reversal
If investors do decide to enter long positions after seeing indications that bullish sentiment will take over again then they must also consider potential targets when doing so – these include both short-term targets such as reaching back up to the initial resistance at around $0.82 as well as more optimistic targets such as hitting highs from mid-July at around $0.938 per token price wise once again..
In conclusion, despite current bearish outlooks and open interest trends favouring sellers, investors should keep an eye out for potential opportunities from buying in low when prices reach support levels such as around $0.566 and use technical indicators like RSI and Fibonacci Retracements to determine whether they believe bullish sentiment may return or not before entering any trades accordingly with appropriate stop-loss levels in mind too!